Whether you graduate, or drop from the University, or even register for less than half-time, you have six months before you start repaying your loan, but you should immediately submit an online Exit Counseling. Check the link to know how to complete this requirement.

The six months are referred to as the grace period. During that period you don't have to pay any principal whether you had a subsidized or an unsubsidized loan. If you have an unsubsidized loan then you will be charged interest during the grace period, however, you can either pay the interest or it will be capitalized.

In any case, you are responsible for starting repayment on time to the Federal Government. The latter usually offers different repayment plans. You will have to choose one. However, you can change plans throughout the life of your loan as long as the maximum repayment period under your new plan is longer than the length of time your loans have already been in repayment. Plans may be changed once a year.

Examples of Typical Direct Loan Repayments

^{(Source: The Guide of Federal Student Aid 2007-2008, U.S. Department of Education)}         

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Payments are calculated using the fixed interest rate of 6.8 percent for student borrowers for loans made on or after July 1, 2006.

a This repayment plan is available to borrowers who have no outstanding balance on a Direct Loan as of Oct. 7, 1998, or who have obtained a Direct Loan after Oct. 7, 1998, and have an outstanding balance on Direct Loans that exceeds $30,000. The amounts were rounded to the nearest dollar and were calculated based on a 25-year repayment plan.

b This is an estimated monthly repayment amount for the first two years of the term and total loan payment. The monthly repayment amount will generally increase every two years, based on this plan.